Fed Board fired four staffers, disciplined five others for sexual harassment: report
The Federal Reserve Board fired four staffers and disciplined five others after receiving complaints alleging sexual harassment between 2020 and 2023, according to a report.
The Board — one of the Fed’s three main entities along with the Federal Open Market Committee and the Federal Reserve Banks — received a total of 11 sexual harassment complaints during that span, according to a document the central bank released to Reuters last month.
Between 2020 and 2023, the Board issued “last chance” warnings to four staff members for sexual harassment and fired another four for sexual harassment “and other work concerns,” according to the list, which Reuters obtained under a Freedom of Information Act request filed last year.
The Board also disclosed three other sexual harassment complaints. In two of those cases, the Board said it took no action because one allegation “wasn’t supported,” and the other was made against an individual who was not a Fed employee.
Another staffer was “counseled on unprofessional communication,” according to the list of disciplinary actions taken under the Board’s harassment policy. It did not provide more details.
“Sexual harassment has no place in our society and it is prohibited at the Federal Reserve,” a Fed spokesperson told The Post. “We have a zero-tolerance policy which prohibits all forms of harassment, even if the behavior does not violate the law.”
While federal regulators must disclose the number of Equal Employment Opportunity (EEO) harassment complaints made against the agency under anti-discrimination laws, they are not generally required to disclose disciplinary actions taken against individuals in the absence of such formal complaints when the reported behavior may not violate the law.
As a result, it is not clear how the Fed data released to Reuters compares with that of other agencies.
The report comes after a disturbing Wall Street Journal expose last year revealed that the Federal Deposit Insurance Corporation had cultivated a toxic work environment rife with sexual misconduct, bullying and racism.
In May, Martin Gruenberg, head of the agency, announced he would be stepping down from his position once a successor was found.
A blistering report conducted by a law firm had detailed several instances in which Gruenberg lashed out at employees who disagreed with him or had to deliver bad news.
Though more than 500 employees described a toxic work environment in the report, the FDIC disclosed only five EEO complaints between 2020 and 2023.
There are several reasons why sexual harassment complaints may not turn into formal EEO complaints, lawyers said.
Federal employees must participate in 30 days of counseling, during which EEO counselors can try to resolve the issue, before they can make a formal complaint, according to the Equal Employment Opportunity Commission.
“I think it’s fair to say that just because the data hasn’t been produced doesn’t mean there isn’t sexual harassment,” said Ariel Solomon, an employment lawyer who represents government workers making sexual harassment complaints. “Certainly, we know that some of the complaints were severe enough that a termination was absolutely appropriate.”
After the Journal first reported on FDIC’s toxic work environment last November, the agency sent emails warning staffers that misconduct would not be tolerated.
“Sexual harassment and retaliation have no place on any team,” Marta Chaffee, senior associate director in supervision and regulation, then wrote.
With Post wires
